THESIS ABSTRACT

Abstract

The development of hydropower is a major factor in Nepal's economic expansion and energy security, but its implementation has been affected by numerous obstacles at various project stages. With an emphasis on four major stages, identification and feasibility, design and procurement, construction, and operation and maintenance, this study examines the obstacles being faced by the Nepal Electricity Authority's (NEA) hydropower project implementation for different modes of generation RoR cum PRoR versus Storage Projects. Past studies include only challenges and obstacles for specific modes of generation and specific project phases. This study aims to identify the status and obstacles for the implementation of the hydropower projects of different modes of generation being implemented by Nepal Electricity Authority. The study also recommends mitigating measures for identified obstacles. The study adopted a mixed-methods design, which includes both qualitative and quantitative data. Primary data was collected by distributing questionnaires to 305 stakeholders involved in hydropower development. The questionnaire included probable obstacles to the implementation of hydropower projects measured on a Likert scale. The responses obtained from the questionnaires were analyzed using SMART PLS software, performing Structural Equation modelling. After assessing obstacles and ranking significant stages ordinally, the mitigating measures were sought by performing Key Informant Interviews with high-ranked stakeholders, clients, contractors, and consultants. The response obtained from KII was analyzed using word cloud analysis to identify the most recommended mitigating measures, and the responses from stakeholders were triangulated. The status was assessed from annual reports, NEA’s publications, and other relevant literature. The results showed that obstacles exist for the implementation of both RoR/PRoR projects. The result further indicated that storage projects faced more obstacles to implementation than RoR/PRoR projects. The result indicated the construction phase with the highest T- value, 6.569, and beta value, 0.276, to be the most critical Project phase in the ROR/PRoR Hydropower development Phase, with force majeure as the most critical indicator, with indicator loading 0.788. Moreover, for Storage Projects, the Design and Procurement Phase was found to be the most critical phase with the highest T-value 4.345 and beta value 0.280 and Land Acquisition and Compensation Problem were the most critical indicator with indicator loading 0.772. The KII suggested the inclusion of a force majeure event in the contract, including clear risk allocation between the parties and completion of land acquisition before entering the construction phase, as the mitigating measures for the implementation of Hydropower projects being developed by NEA. The study concludes that there exist obstacles for the implementation of Hydropower Projects, but the obstacles for the Storage mode of generation are more distinct than the RoR/PRoR mode of generation. The study recommends that a clear definition of all stakeholders' roles in the contract, provision of a one-door policy for interdepartmental coordination, making amendments in environment-related laws, adequate geophysical and technical investigation, and completion of land acquisition before construction, and timely settlement of Claims and Disputes and Sufficient Hydro meteorological investigation to minimize obstacles for the implementation of Hydropower Projects being developed by NEA.

Keywords

Force Majeure, Geotechnical problem, Land Acquisition, investigation, Nepal Electricity Authority, Structural Equation Modelling